{"data":{"id":"us-ky/krs-6.350","jurisdiction":"us-ky","citation":"KRS 6.350","heading":"Actuarial analysis required for bill before General Assembly to increase","body":"benefits or participation in state-administered retirement system.\n(1) A bill which would increase or decrease the benefits or increase or decrease\nparticipation in the benefits or change the actuarial accrued liability of any state -\nadministered retirement system shall not be reported from a legislative committee\nof either house of the General Assembly for consideration by the full membership\nof that house unless the bill is accompanied by an actuarial analysis.\n(2) (a) An actuarial analysis required by this section shall show the economic effect\nof the bill on the state -administered retirement system over a thirty (30) year\nperiod, including:\n1. An estimate of the effect on the unfunded actuarial accrued liabilities\nand funding levels of the affected systems; and\n2. A projection of the annual employer costs to the systems of\nimplementing the legislation over the thirty (30) year period. The annual\nemployer cost projection shall include the effect on the contributions of\nparticipating employers as a percentage of total payroll and in total\ndollars of contributions.\n(b) If a bill affects more than one (1) state -administered retirement system, the\nactuarial analysis shall proj ect costs for each affected state -administered\nretirement system.\n(c) A statement that the cost is negligible or indeterminable shall not be\nconsidered in compliance with this section. If a cost cannot be determined by\nthe actuary in accordance with paragr aph (a) of this subsection, then the\nsystems shall certify in writing:\n1. The estimated number of individuals affected;\n2. The estimated change in benefit payments;\n3. The estimated change to employer costs; and\n4. The estimated change to administrative expenses.\n(d) An actuarial analysis shall state the actuarial assumptions and methods of\ncomputation used in the analysis and shall state whether or not the bill or\nresolution, if enacted, would, in the opinion of the  actuary, make the affected\nstate-administered retirement system actuarially unsound or, in the case of a\nsystem already actuarially unsound, more unsound. Actuarial cost methods\nand assumptions that meet actuarial standards of practice established by the\nActuarial Standards Board shall be used in all cost projections.\n(e) An actuarial analysis required by this section shall be prepared by an actuary\nwho is a fellow of the Conference of Consulting Actuaries or a member of the\nAmerican Academy of Actuaries.\n(3) (a) An actuary commissioned to make an actuarial analysis that is required by this\nsection, or for the purpose of seeking appropriations for a state -administered\nretirement system, shall include in the analysis a complete definition of each\nactuarial term used in the analysis and, either in the analysis or in a separate\nactuarial valuation report made available as a public record, an enumeration\nand explanation of each actuarial assumption used to complete the actuarial\nanalysis.\n(b) If the actuary commissioned to complete the actuarial analysis is relying upon\nassumptions or methods that have not been previously established by the\nactuary in an actuarial valuation of the affected state -administered retirement\nsystem, the actuary shall clearly note and d escribe the new assumption or\nmethod and the basis for selecting the assumption or method, including any\ndocumentation, studies, written opinions, calculations, and citations the\nactuary used to support the use of the assumption or method.\n(4) The actuarial analysis required by this section:\n(a) Shall be completed by the actuary retained by the affected state -administered\nretirement system. The state -administered retirement systems shall provide\nthe analysis without cost to the General Assembly;\n(b) Shall be provided in a uniform format established by the Legislative Research\nCommission;\n(c) Shall include on the front page a summary of relevant data from the analysis,\nincluding but not limited to:\n1. The total nominal dollar savings or costs over the thirty (30) year period;\n2. The net present value of savings or costs over the thirty (30) year period;\nand\n3. The estimated change in the normal cost, if applicable; and\n(d) Shall include a certification by the actuary that the information provided is\naccurate.\n(5) For purposes of this section, the terms:\n(a) \"Funding level\" means the actuarial value of assets divided by the actuarially\naccrued liability expressed as a percentage; and\n(b) \"State-administered retirement system\" shall include:\n1. The Kentucky Emplo yees Retirement System and the State Police\nRetirement System administered by the Kentucky Retirement Systems\nand established under the provisions of KRS 16.505 to 16.652 and\n61.510 to 61.705;\n2. The Kentucky Teachers' Retirement System established under K RS\n161.220 to 161.716;\n3. The Judicial Retirement Plan established under KRS 21.345 to 21.580;\n4. The Legislators' Retirement Plan established under KRS 6.500 to 6.577;\nand\n5. The County Employees Retirement System established under KRS\n78.510 to 78.852.","path":["KRS Chapter 6"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=54874","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:48:24Z","sha256":"ffaa13cd678e290e3aec9a87ecabaf1ecebc8892b6ee976d794489f474a012a5","source_id":"us-ky","stale":false,"prev":"us-ky/krs-6.330","next":"us-ky/krs-6.360"},"notice":"GroundRules: Original legal text. Not legal advice."}